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REGISTERED NUMBER: OC349495
Allgroup LLP
Financial Statements
30 June 2023
Allgroup LLP
Financial Statements
Period from 1 January 2023 to 30 June 2023
Contents
Page
Designated members and professional advisers
1
Members' report
2
Independent auditor's report to the members
4
Statement of income and retained earnings
7
Statement of financial position
8
Reconciliation of members' interests
10
Statement of cash flows
12
Notes to the financial statements
13
Allgroup LLP
Designated Members and Professional Advisers
Designated members
J & PC Associates Limited
M & TC Associates Limited
R & OC Associates Limited
G & PC Associates Limited
Allpack Limited
The Allgroup Trust
Registered office
Somerville House
Blakeney Way
Kingswood Lakeside
Cannock
Staffordshire
WS11 8LD
Auditor
Riverside Accountancy Lancaster Limited
Chartered accountants & statutory auditor
Second Floor, Riverside Offices
26 St George's Quay
Lancaster
LA1 1RD
Bankers
National Westminster
Leicester Customer Service Centre
Bede House
11 Western Boulevard
Leicester,
LE2, 7EJ
Allgroup LLP
Members' Report
Period from 1 January 2023 to 30 June 2023
The members present their report and the financial statements of the LLP for the period ended 30 June 2023 .
Principal activities
The principal activity of the company during the year was the provision of single source packaging contracts for many blue-chip, multiple line, packaging users.
Designated members
The designated members who served the LLP during the period were as follows:
J & PC Associates Limited
M & TC Associates Limited
R & OC Associates Limited
G & PC Associates Limited
Allpack Limited
The Allgroup Trust
Policy regarding members' drawings and the subscription and repayment of amounts subscribed or otherwise contributed by members
Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the LLP.
New members are required to subscribe a minimum level of capital and in subsequent years members are invited to subscribe for further capital, the amounts of which is determined by the performance and seniority of those members. On retirement, capital is repaid to members.
Events after the end of the reporting period
After the year end the LLP ceased to trade and all trade was transferred to a connected party.
Members' responsibilities statement
The members are responsible for preparing the members' report and the financial statements in accordance with applicable law and regulations. Company law as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 requires the members to prepare financial statements for each financial period. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law as applied to limited liability partnerships the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and the profit or loss of the LLP for that period. In preparing these financial statements, the members are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business. The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
This report was approved by the members on 18 March 2024 and signed on behalf of the members by:
Allpack Limited
Designated Member
Registered office:
Somerville House
Blakeney Way
Kingswood Lakeside
Cannock
Staffordshire
WS11 8LD
Allgroup LLP
Independent Auditor's Report to the Members of Allgroup LLP
Period from 1 January 2023 to 30 June 2023
Opinion
We have audited the financial statements of Allgroup LLP (the 'LLP') for the period ended 30 June 2023 which comprise the statement of income and retained earnings, statement of financial position, reconciliation of members' interests, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the LLP's affairs as at 30 June 2023 and of its result for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the LLP's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.
Other information
The financial statements of the company for the year ending 31st December 2021 were not audited as there was no statutory requirement for audit.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit.
Responsibilities of members
As explained more fully in the members' responsibilities statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Review of members minutes and review of nominal postings for legal and professional fees ensured we identified any regulatory compliance issues and laws that company must follow in the year and to the date of signing the financial statements - The assessment of fraud was consider as low due to the segregation of duties seen, the low levels of cash handled and the regular reporting requirements to the members. A review of journal entries and consideration of their appropriateness was carried out through the audit - During the audit we speak to management, test the systems and speak to various members of the finance function to understand the entity its processes and the nature of trade to assist in determining if the financial statements are true and fair. - Challenging assumptions made by management in making their significant accounting estimates. - Reviewing financial statement disclosure and testing to supporting documentation to assess compliance with applicable laws and regulations - Tangible assets are reviewed for impairment and recoverability in line with policy. Ownership details are obtained to check legal status As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members. - Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the LLP to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Due to the change in year end a physical stock take was not completed at 30th June 2023, there were two completed either side of the year end and our other audit procedures confirmed stock was materially correct in the financial statements.
Use of our report
This report is made solely to the LLP's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP's members as a body, for our audit work, for this report, or for the opinions we have formed.
Penelope Bowden ACA
(Senior Statutory Auditor)
For and on behalf of
Riverside Accountancy Lancaster Limited
Chartered accountants & statutory auditor
Second Floor, Riverside Offices
26 St George's Quay
Lancaster
LA1 1RD
25 March 2024
Allgroup LLP
Statement of Income and Retained Earnings
Period from 1 January 2023 to 30 June 2023
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
Note
£
£
Turnover
4
15,383,411
32,424,588
Cost of sales
9,977,134
21,078,161
-------------
-------------
Gross profit
5,406,277
11,346,427
Distribution costs
9,710
23,052
Administrative expenses
3,377,022
6,035,989
Other operating income
5
8,250
9,625
------------
-------------
Operating profit
7
2,027,795
5,297,011
Other interest receivable and similar income
25,741
11,795
Interest payable and similar expenses
8
18,400
41,828
------------
-------------
Profit for the financial period before members' remuneration and profit shares
2,035,136
5,266,978
Members' remuneration charged as an expense
9
2,035,136
5,266,978
----
----
Result for the financial period available for discretionary division among members
----
----
All the activities of the LLP are from continuing operations.
Allgroup LLP
Statement of Financial Position
30 June 2023
30 Jun 23
31 Dec 22
Note
£
£
£
Fixed assets
Intangible assets
10
611,906
699,322
Tangible assets
11
1,677,100
1,716,424
------------
------------
2,289,006
2,415,746
Current assets
Stocks
12
3,805,704
3,549,129
Debtors
13
9,994,095
9,186,506
Cash at bank and in hand
2,805,283
2,594,303
-------------
-------------
16,605,082
15,329,938
Creditors: amounts falling due within one year
14
3,935,643
4,229,652
-------------
-------------
Net current assets
12,669,439
11,100,286
-------------
-------------
Total assets less current liabilities
14,958,445
13,516,032
Creditors: amounts falling due after more than one year
15
198,869
257,387
-------------
-------------
Net assets
14,759,576
13,258,645
-------------
-------------
Represented by:
Loans and other debts due to members
Other amounts
17
14,759,576
13,258,645
-------------
-------------
Members' other interests
Other reserves, including the fair value reserve
-------------
-------------
14,759,576
13,258,645
-------------
-------------
Total members' interests
Loans and other debts due to members
17
14,759,576
13,258,645
Members' other interests
-------------
-------------
14,759,576
13,258,645
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to LLPs subject to the medium LLPs regime.
Allgroup LLP
Statement of Financial Position (continued)
30 June 2023
These financial statements were approved by the members and authorised for issue on 18 March 2024 , and are signed on their behalf by:
Allpack Limited
Designated Member
Registered number: OC349495
Allgroup LLP
Reconciliation of Members' Interests
Period from 1 January 2023 to 30 June 2023
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
Total members' interests
Other reserves, including the fair value reserve
Total
Other amounts
Total
Total 30 Jun 23
£
£
£
£
£
Balance at 1 January 2023
13,258,644
13,258,644
13,258,644
Profit for the financial period available for discretionary division among members
----
----
-------------
-------------
-------------
Members' interests after profit for the period
13,258,644
13,258,644
13,258,644
Drawings
(615,945)
(615,945)
(615,945)
Other movements
2,116,877
2,116,877
2,116,877
----
----
-------------
-------------
-------------
Balance at 30 June 2023
14,759,576
14,759,576
14,759,576
----
----
-------------
-------------
-------------
Allgroup LLP
Reconciliation of Members' Interests (continued)
Period from 1 January 2023 to 30 June 2023
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
Total members' interests
Other reserves, including the fair value reserve
Total
Other amounts
Total
Total 2022
£
£
£
£
£
Balance at 1 January 2022
9,177,068
9,177,068
9,177,068
Profit for the financial year available for discretionary division among members
Drawings
(1,185,403)
(1,185,403)
(1,185,403)
Other movements
5,266,980
5,266,980
5,266,980
----
----
-------------
-------------
-------------
Balance at 31 December 2022
13,258,645
13,258,645
13,258,645
----
----
-------------
-------------
-------------
Allgroup LLP
Statement of Cash Flows
Period from 1 January 2023 to 30 June 2023
30 Jun 23
31 Dec 22
£
£
Cash flows from operating activities
Profit for the financial period
Adjustments for:
Depreciation of tangible assets
102,440
167,403
Amortisation of intangible assets
87,416
174,831
Other interest receivable and similar income
( 25,741)
( 11,795)
Interest payable and similar expenses
18,400
41,828
Gains on disposal of tangible assets
( 3,427)
Accrued expenses
298,514
118,158
Changes in:
Stocks
( 256,575)
( 79,725)
Trade and other debtors
( 763,475)
( 1,955,305)
Trade and other creditors
( 639,583)
381,767
------------
------------
Cash generated from operations
( 1,178,604)
( 1,166,265)
Interest paid
( 18,400)
( 41,828)
Interest received
25,741
11,795
------------
------------
Net cash used in operating activities
( 1,171,263)
( 1,196,298)
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 63,116)
( 1,419,077)
Proceeds from sale of tangible assets
13,950
Purchase of intangible assets
( 874,153)
------------
------------
Net cash used in investing activities
( 63,116)
( 2,279,280)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
108,653
Repayments of borrowings
( 1)
Payments of finance lease liabilities
( 55,521)
( 96,741)
Other financing cash flow adjustment
1,500,881
4,081,577
------------
------------
Net cash from financing activities
1,445,359
4,093,489
------------
------------
Net increase in cash and cash equivalents
210,980
617,911
Cash and cash equivalents at beginning of period
2,594,303
1,976,392
------------
------------
Cash and cash equivalents at end of period
2,805,283
2,594,303
------------
------------
Allgroup LLP
Notes to the Financial Statements
Period from 1 January 2023 to 30 June 2023
1.
General information
The LLP is registered in England and Wales. The address of the registered office is Somerville House, Blakeney Way, Kingswood Lakeside, Cannock, Staffordshire, WS11 8LD.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships' issued in December 2018 (SORP 2018).
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. The financial statements are rounded to the nearest £1.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements There have been no critical judgements made by the members in the process of applying the company's accounting policies that have a significant effect on the amounts recognised in the statutory financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (i) Recoverability of debtors The company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability the members have considered factors such as the ageing of the debtors, past experience of recoverability, and the credit profile of individual groups of customers. (ii) Determining the residual values and useful economic lives of property plant and equipment and intangible assets The company depreciates tangible and intangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmers. Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to ashes the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices. (iii) Impairment of intangible assets Intangible assets are tested for impairment where there is an indication that the asset may be impaired. Existence of impairment indicators is assessed at each reporting date, and the director deemed there to be no indicators at the end of the year.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Members' participation rights
Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with Section 22 of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships'. A member's participation right results in a liability unless the right to any payment is discretionary on the part of the LLP.
Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.
Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the statement of income and retained earnings in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the statement of financial position.
Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the statement of income and retained earnings and are equity appropriations in the statement of financial position.
Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.
All amounts due to members that are classified as liabilities are presented in the statement of financial position within 'Loans and other debts due to members' and are charged to the statement of income and retained earnings within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the statement of financial position within 'Members' other interests'.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
-
25% reducing balance
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the LLP are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument./ Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4.
Turnover
Turnover arises from:
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
£
£
Sale of goods
15,383,411
32,424,588
-------------
-------------
The whole of the turnover is attributable to the principal activity of the LLP wholly undertaken in the United Kingdom.
5.
Other operating income
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
£
£
Rental income
8,250
9,625
-------
-------
6.
Staff costs
The average number of persons employed by the LLP during the period, including the members with contracts of employment, amounted to:
30 Jun 23
31 Dec 22
No.
No.
Administrative
67
59
----
----
The aggregate employment costs incurred during the period (excluding members) were:
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
£
£
Wages and salaries
1,629,213
2,817,434
------------
------------
7.
Operating profit
Operating profit or loss is stated after charging/crediting:
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
£
£
Amortisation of intangible assets
87,416
174,831
Depreciation of tangible assets
102,440
167,403
Gains on disposal of tangible assets
( 3,427)
Impairment of trade debtors
6,757
(18,942)
Foreign exchange differences
47,302
81,725
Fees payable for the audit of the financial statements
13,328
9,500
---------
---------
8.
Interest payable and similar expenses
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
£
£
Interest on obligations under finance leases and hire purchase contracts
10,404
21,503
Other interest payable and similar charges
7,996
20,325
--------
--------
18,400
41,828
--------
--------
9.
Information in relation to members
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
£
£
Highest paid members remuneration
549,486
1,250,909
----
----
Period from
1 Jan 23 to
Year to
30 Jun 23
31 Dec 22
No.
No.
Average number of members
6
6
----
----
10.
Intangible assets
Patents, trademarks and licences
£
Cost
At 1 January 2023 and 30 June 2023
874,153
---------
Amortisation
At 1 January 2023
174,831
Charge for the period
87,416
---------
At 30 June 2023
262,247
---------
Carrying amount
At 30 June 2023
611,906
---------
At 31 December 2022
699,322
---------
11.
Tangible assets
Land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
950,000
785,211
376,782
2,111,993
Additions
48,566
14,550
63,116
---------
---------
---------
------------
At 30 June 2023
950,000
833,777
391,332
2,175,109
---------
---------
---------
------------
Depreciation
At 1 January 2023
212,103
183,466
395,569
Charge for the period
76,608
25,832
102,440
---------
---------
---------
------------
At 30 June 2023
288,711
209,298
498,009
---------
---------
---------
------------
Carrying amount
At 30 June 2023
950,000
545,066
182,034
1,677,100
---------
---------
---------
------------
At 31 December 2022
950,000
573,108
193,316
1,716,424
---------
---------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 30 June 2023
264,819
23,542
288,361
---------
--------
---------
At 31 December 2022
326,911
26,905
353,816
---------
--------
---------
12.
Stocks
30 Jun 23
31 Dec 22
£
£
Raw materials and consumables
3,805,704
3,549,129
------------
------------
13.
Debtors
30 Jun 23
31 Dec 22
£
£
Trade debtors
6,159,121
7,130,112
Prepayments and accrued income
362,403
318,289
Other debtors
3,472,571
1,738,105
------------
------------
9,994,095
9,186,506
------------
------------
14. Creditors: amounts falling due within one year
30 Jun 23
31 Dec 22
£
£
Trade creditors
2,471,985
2,997,624
Accruals and deferred income
799,389
456,811
Social security and other taxes
530,218
661,685
Obligations under finance leases and hire purchase contracts
116,529
113,532
Other creditors
17,522
------------
------------
3,935,643
4,229,652
------------
------------
15. Creditors: amounts falling due after more than one year
30 Jun 23
31 Dec 22
£
£
Obligations under finance leases and hire purchase contracts
198,869
257,387
---------
---------
16.
Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
30 Jun 23
31 Dec 22
£
£
Not later than 1 year
116,529
113,532
Later than 1 year and not later than 5 years
198,869
257,387
---------
---------
315,398
370,919
---------
---------
17.
Loans and other debts due to members
30 Jun 23
31 Dec 22
£
£
Loans from members
14,759,576
13,258,645
-------------
-------------
18.
Reserves
Profit and Loss account - This reserve records retained earnings and accumulated losses.
19.
Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 30 Jun 2023
£
£
£
Cash at bank and in hand
2,594,303
210,980
2,805,283
Debt due within one year
(113,532)
(2,997)
(116,529)
Debt due after one year
(257,387)
58,518
(198,869)
------------
---------
------------
Net debt (before members' debt)
2,223,384
266,501
2,489,885
------------
---------
------------
Loans and other debts due to members
Other amounts
(13,258,645)
(1,500,931)
(14,759,576)
-------------
------------
-------------
Net debt
( 11,035,261)
( 1,234,430)
( 12,269,691)
-------------
------------
-------------
20.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
30 Jun 23
31 Dec 22
£
£
Not later than 1 year
440,674
476,827
Later than 1 year and not later than 5 years
768,056
989,409
------------
------------
1,208,730
1,466,236
------------
------------
21.
Related party transactions
Included within other debtors within one year is £39,113 (2022 - £1,370) due from Grip Systems Limited, a company in which the members of the LLP own 100% of the share capital. During the period, members of the LLP drew cash and assets totalling £615,943 During the year the LLP purchased a property from a connected party at market rate. Rent is paid to a connected party of £180,000 per year.
22.
Controlling party
The LLP is under the control of the members with each member having an equal vote.